India / RBI tells board it favours a complete ban on cryptos: Report

New Delhi: The Reserve Bank of India (RBI) is in favour of complete ban on private cryptocurrencies in India, people in the know of the matter told ANI.

RBI has conveyed its stance at the 592nd meeting of its Central Board of Directors held in Lucknow on Friday under the Chairmanship of Governor Shaktikanta Das.

The board discussed various aspects relating to central Bank digital currency and private crypto currencies and reviewed the current domestic and global economic situation, evolving challenges and remedial measures.

Sources told ANI that government is not likely to bring a bill on cryptocurrency in the ongoing winter session of the Parliament.

A government source told that it was not discussed in the last cabinet meeting. The winter session of parliament is scheduled to end on December 23. A bill on cryptocurrency was among 26 new bills on the agenda of the government for the winter session.

Vikash Ahuja, CEO of crypto exchange Crosstower told ANI that nearly 15 million Indian retail investors representing 1.8 per cent of the population have invested over $6.6 billion in crypto assets.

"India has a huge potential to become a global leader in this technology. Being a digital first country, this innovative technology needs the framework," he said.

"Crypto is a new, innovative technology but just a part of a bigger economical boost that blockchain offers for financial activities such as lending, payments, and distributing credit. It is the Web 3.0. and India should embrace this new technology. With the right policies, India is extremely well-positioned to allow the revolution in information technology to improve Indian citizens' quality of life, creating jobs and reinvigorating the economy," he added.

He hoped that the proposed bill will allow innovation while providing for consumer protection.

"With the government's plans to present a crypto regulation bill in the parliament's winter session, we look forward to it and hope to see a balanced approach - allowing innovation while at the same time balancing the need for consumer protection. We strongly believe Web 3.0 has the potential to drive $1.1 trillion of economic value for India by 2032. We see growth potential for the sector in 2022 as well. With the right policies and regulatory framework, we believe India can become a global leader in this technology," he said.

Sanjiv Mehta, CMD, HUL said cryptocurrency is an issue which should be left to central bank to deal with.

"RBI decides the monetary policy and it should be left on RBI to decide the future of cryptocurrency," he said.

Uday Shankar, president, FICCI, said government is looking into the matter very seriously.

"Government wants to check the misuse of the technology. At appropriate time government will take appropriate decision keeping all the aspects in mind," he said.